Guernsey’s financial services regulator has assessed the finance centre and the results underline that its position for ‘green’ and ‘sustainable’ finance
The results found that the regime provides a robust and transparent product, demonstrating independent validation to current and potential investors that its objective of mitigating environmental damage results in a net positive outcome for the environment.
Dr Andy Sloan, Guernsey Finance Deputy Chief Executive, Strategy said: “The review demonstrates that the regime is working well and validates that its robust rules preclude greenwashing, demonstrating that it is a popular and serendipitous product”.
Guernsey recognises the importance of green and sustainable initiatives and was an early adopter in this area. The Guernsey Green Fund, created in 2018, was the world’s first regulated green investment fund product that adopts internationally agreed objectives of COP21, the United National Climate Change Conference.
Dr Sloan added: “In my opinion, this review by the Guernsey Financial Services Commission further validates the strategy’s early focus on ESG and confirms Guernsey’s place as a leader in this field.” There are now 10 Green Funds domiciled in Guernsey, demonstrating that the appetite for investing in green initiatives continues to increase.
The review reveals that the appetite for green investment and training within the Bailiwick is also growing. There is increasing evidence that Bailiwick businesses are taking green and ESG risk factors into consideration when planning their business strategies. During risk assessments undertaken in 2019 and 2020 supervisors regularly raised questions regarding appetite and approach to green and ESG.
A number of designated administrators are members of the Guernsey Green Finance Committee that promotes knowledge sharing and up-skilling within the Bailiwick.